Loans in Switzerland
In this text, we do not give you financial advice and everything you decide will be your decision.
When it comes to finances, you have to be extra careful, because the decisions you make can affect your life for a long time.
So be well-informed and do your complete research before making any decision.
Credit Mutuo AG, – a portal for comparing loans in Switzerland, is one of the leading online credit providers in Switzerland, based in Basel. They have been active as a financial service provider for over 30 years and our success is primarily due to satisfied, loyal customers who recommend us to others.
You can get personal loans between CHF 3,000 and CHF 350,000 at favorable interest rates from 4.4%. These are offered to you with flexible terms of 6 to 120 months, which allow you to optimally adapt your monthly loan installment to your needs.
- Permanent employees
As a permanent employee, you have the best conditions for loans of up to CHF 350,000.
- Foreigners with a C permit
Benefit from top credit conditions with interest from 4.4% with a C permit.
- Temporary employees
Temporary employees can receive loans of up to CHF 80,000.
- Foreigners with B permit
If you have the B permit, you will receive a loan after 6 months.
- Pensioners: AHV, IV
Pensioners can also receive loans of up to CHF 80,000 up to their 70th birthday.
- Frontier workers
Benefit from the low Swiss interest rates with a cross-border commuter loan from Mutuo AG.
As a self-employed person, you can get top loans of up to CHF 350,000.
- Foreigners with L permit
You can also get loans in Switzerland with a short-term residence permit.
You can get loans offered by credit banks in Switzerland with an interest rate of 4.4% to 9.9%.
- The honest credit comparison
- Serious and safe
- Discreet credit advice
- 100% Free with no fees
- Individual comparisons
- All (online) loan providers
- Get cheap loans
- The Swiss original
But doing so is only the first step in the process. A loan application and approval process are more challenging. To assess if you are qualified for a loan, lenders each have their own set of requirements.
The most stringent qualifying requirements often apply to Switzerland’s most cheap loans, the majority of which are online loans. Your prospects of receiving the lowest interest rates are slim unless you have great credit.
Another advantage is that these loans usually have lower interest rates than other loan options. This may result in long-term cost savings for you. They are frequently easier to get than other forms of loans because they frequently only require your paycheck as security.
Moreover, getting loans in Switzerland will help you build a good credit history. Your creditworthiness will increase, and future loans will be easier to obtain if you repay your loan on time. If you’re considering getting a personal loan, you should carefully weigh its benefits and drawbacks to be sure it’s the best option for you. They might be a great alternative to borrowing money from friends or relatives to receive the money you need.
Who can issue the loans in Switzerland?
Banks, whether they are full-service banks, distinct business units of banks, specialist lending banks, or dedicated ﬁnancial institutions, are the most prevalent commercial lenders in Switzerland who provide loans to private individuals.
Crowd lending institutions: The total loan volume given by crowd lenders has been increasing significantly year over year in terms of loans for people, businesses, and real estate. Platforms for crowd lending operate as brokers for lenders and borrowers.
Lenders here are either individual borrowers or business investors (companies). Although crowd lending platforms don’t really make loans, they are nevertheless governed by the Consumer Credit Act when it comes to handling personal loans.
Credit brokers are private persons or businesses that offer commercial brokerage services for personal loans. They oversee the lending process between the bank and the borrower, rather than awarding loans themselves and advising clients on their options. One example of a credit broker is Credaris, a Comparis partner service.
Types of loans in Switzerland
Below are examples of loans for private individuals in Switzerland:
- Mortgages: secured by the underlying real estate asset
- Lombard loans: involves lending out easily liquefiable assets such as securities (secured loan)
- Loans between private individuals
- Overdraft credit (for bank accounts)
- Credit cards and store cards
- Peer-to-peer loans
- Personal loans
Types of car financing in Switzerland
There are 2 types of financing in Switzerland that you must consider if you decide to buy:
A bank car loan in Switzerland
This is the most common loan application used to buy a new car in Switzerland. Some banks already offer the option of a car loan that is specifically intended for the purchase of a vehicle and that carries a fixed interest rate. This method of financing your new car allows you to buy a car from a dealer and pay for it immediately, while repaying the loan to the bank in installments agreed upon in the contract.
Financing offered to you by the dealer
For several years now, manufacturers have been offering an internal financing service offered by the brand itself through its distributors. , especially for buying a car. In addition to offers, this type of financing includes a higher interest rate than with a bank and can present obstacles when it comes to paying off the loan before the contract expires. They also do not allow you in many cases to sell the car before the end of the financing, because the car book is not with you but with the bank.
Types of mortgages in Switzerland
The information below serves as a basic introduction to Swiss mortgages. It is suggested that you speak with a mortgage expert to identify the one that best suits your requirements.
Although most of these mortgages are used to purchase homes, certain lenders can let you use the funds to launch a business in Switzerland or become an entrepreneur.
This kind of mortgage is advantageous since it enables long-term financial planning with the assurance that your spending will not alter. No matter how the market performs, the amount you repay is frozen at a particular interest rate. Before being renewed, this insurance is valid for every 10 to 20 years.
This sort of mortgage has restrictions, such as the fact that you would not profit from falling interest rates and that the total amount you pay could not be modified before its expiration. You can either renegotiate at a new price once the insurance expires or move to a mortgage with a variable interest rate.
A temporary rate may be offered by many lenders for the first few years of a policy, but once these are over, it may increase significantly. Many policies do not need a minimum payback, allowing for 50-year contracts. Before applying, it’s crucial to make sure that your rate will stay reasonable during the duration of the policy.
This decreases the possibility of sharp increases in interest rates while maintaining the advantages of a more flexible policy. By the end of 2021, LIBOR rates will gradually be replaced by SARON rates, causing interest rates to follow the Swiss market rather than a worldwide gauge headquartered in London.
Banks commonly offer SARON mortgages for four to ten years, which is the standard length of a SARON mortgage.
These loans only cover about 60 to 80 percent of the value of the home and are only available if you are using the equity in your old house to purchase a new one.
Remember that these loans are considered to be short-term, so make sure to confirm the duration of your coverage. You will need to explain the circumstance to your lender, renegotiate, or obtain a conventional mortgage if your loan matures prior to the sale of your previous residence.
Regular income, royalties, alimony or child support payments, and pension income from all three pillars are a few of the revenue streams that you can combine. These loans often have reasonable interest rates and might be a great method to swiftly repay your mortgage.
Online loans in Switzerland
Many borrowers still prefer to go in person to a bank or other lender’s branch office. But more Swiss consumers are submitting loan applications online. Nowadays, virtually every lender provides online loan applications. These include:
- Bob credit
- Cembra Money Bank
- Credit-now (from Credit Suisse subsidiary Bank-now)
- Banque Cantonale de Genève (BCGE)
- Good finance
- Migros Bank (Migros Bank offers a brick-and-mortar loan and a more affordable online loan as two separate products).
Online loans are frequently the most cost-effective personal loans in Switzerland. The borrowers are required to enter all the information for online loans. Due to the fact that you perform some of the jobs yourself, the bank or other online lender saves time and effort. Lenders can offer loans at a somewhat lower cost thanks to these cost savings.
An interest rate’s minimum and maximum are frequently advertised by lenders. Many customers are unable to take advantage of the cheapest deals because the lowest interest rates are only available to those with the best credit histories.
Before submitting an application, take the time to learn whether you will be approved for a loan from a particular lender. Your ZEK credit history will be negatively affected by a refused loan application, which will make it more challenging to receive loans in the future.
Even though a lender’s website has a Swiss domain (.ch), it is typically advised to avoid lenders who are not based in Switzerland. Examine the site’s imprint and contact details carefully to ascertain whether the broker genuinely has a Swiss office.
You can learn about what to expect to pay for loans in Switzerland by first comparing the interest rates of personal loans.
Conditions for an online loan application in Switzerland
- Being at least 18 years old and of legal age. Some lenders do, however, impose an upper age limit (not older than 69 years old) beyond which they will not make loans
- Your home country is Switzerland. Some lenders include Liechtenstein residents in this criteria. Some creditors will also lend you money if you live in the canton that the organization serves
- You have a reliable job. Under Swiss law, borrowers are not qualified for loans while they are on trial
- Have a reasonable amount of debt. The prospects of obtaining finance again will be lowered if you have large outstanding balances on other credit. The amount of debt should be in line with your income (with the payment of all loans taking up no more than 35% of our paycheck)
- Do not report having bad credit to any Swiss credit bureaus (ZEK, CRIF, Intrum Justitia).
It is also a fantastic method for obtaining the lowest interest rate. Since you are not required to utilize a bank, you can examine the interest rates charged by several lenders and select the one with the best terms.
The best approach to obtaining a personal loan with an attractive interest rate is to have a credit broker compare the interest rates of various lenders. With the help of the loan comparison website, this is simple to do.
You can compare the interest rates of several lenders using the trustworthy platform Miro – Kredit (e.g., Cembra Money Bank AG). This way, you may obtain the finest terms for your personal loan and avoid the possibility of having negative ZEK entries (the Central Office for Credit Information).
The ideal security for debtors was produced by the Swiss Consumer Credit Law (“KKG”). Since aggressive advertising and current or express loans are prohibited in order to prevent quick and reckless borrowing that could ultimately land people in difficulty, this has been done on purpose.